Common Agricultural Policy

Kelvin Hopkins Excerpts

Thursday 8th March 2012 Westminster Hall

[Miss McIntosh]

We will return to greening measures in our further report. The greening measures are the most controversial part of the reform. We believe that the CAP should enhance food production capacity—not necessarily increasing production now—by keeping land in agricultural use and in good environmental condition so that the land is usable when we need it. We need a competitive and viable agricultural sector. We need to redress the imbalances, because farmers cannot get a fair return from the market.

[Kelvin Hopkins (Luton North) (Lab)]

The hon. Lady makes a point about the importance of food security for the long-term future and for maximising our self-sufficiency, with which I totally agree. Does she agree that the logic of such an argument is that agricultural policy and agricultural subsidy should be managed nationally, not internationally?

[Miss McIntosh]

The evidence we received was very clear in that regard: as long as there is a level of farm support across the European Union—and in other parts of the international community—farmers subscribe to decisions being taken within the European Union, so that there is a proverbial level playing field. That is something I have sought most of my professional life. I do not know if we have reached it yet.

I want to say a few words about direct payments. In the Committee’s view, direct payments should be retained—the evidence was very powerful in this regard—up to 2020. They should not be abolished until business conditions in agriculture improve, because UK farms are highly dependent on direct payments—currently the single farm payment as introduced in 2005. Without them, more than 50% of farmers would be unprofitable. I dare say that many of those would probably be in my uplands in Thirsk, Malton and Filey. The evidence we received indicated that UK livestock production would fall significantly as a result of such an approach although, interestingly, it would have only a negligible effect on crop production. The Committee is concerned about the implications for food security and for landscapes, and the rural livelihoods that depend on farming.

--- Later in debate ---

[Kelvin Hopkins (Luton North) (Lab)]

I apologise, Mr Sheridan, for not being here for some of the debate. I have been trying to speak in the debate in the main Chamber. Being in two places at once is rather difficult. I wanted to have a say on the common agricultural policy, on which I have commented many times in the Chamber, and to take a rather more radical position than the Select Committee on Environment, Food and Rural Affairs or the Government.

I was somewhat disappointed by the Select Committee report. It was written by well-intentioned and good people, but I am disappointed that it does not take a radical position. In some respects, I support the Government’s position more strongly than the Committee’s. The report says that the CAP no longer takes the lion’s share of the budget, but it is still 40%. What is a lion’s share? I think that 40% is pretty much a lion’s share.

The CAP is still a net cost to the UK, although not as high as it was, and food prices have been consistently higher for UK consumers ever since we joined the European Union, or the Common Market, as it was. Higher food prices are regressive, in that they bear more heavily on those who spend a higher proportion of their income on food, namely ordinary working people and the poor. In that respect, it has always been negative, certainly in terms of the people in Luton North whom I represent.

Access to cheaper food from elsewhere in the world has been restricted. Before the CAP, UK prices and national subsidies were related to lower world food prices, not to the higher prices demanded inside the CAP area. UK membership of the European Union has resulted in an excessive cumulative cost in both budget and taxpayer terms and in food prices, but it has also had a knock-on effect on economic growth. If one spends more of one’s wealth on subsidising agriculture, clearly less of one’s wealth can be used in other parts of the economy, and we have had lower growth overall as a result.

On numerous occasions, I have called for the abolition of the CAP. I keep pressing that point, because I believe that within the European Union, or whatever it might be called, national subsidies would be more appropriate. They would be better judged, because nation states know better what it is appropriate to subsidise within their own economies; their agricultural sectors are different and they would be much more likely to husband their resources carefully if it bore directly on their own taxpayers rather than coming from some great gift in the sky, namely a CAP budget contributed to disproportionately by countries such as Britain.

That would be more targeted and efficient. It would also cause countries to decide to what extent they want to keep their agriculture at the same level or increase its size for security reasons. The report makes the point well about food security for the future. If we as nation states were concerned about it, our food production would be better than it is under the CAP arrangement, which makes us casual about it all.

Britain in particular would do well to maximise its food production—not absolutely, but in order to ensure secure supplies for the future. I am possibly the only person here born during the second world war. I survived only because we managed to import food, mainly across the Atlantic. Many people died bringing that food. We learned that producing a higher proportion of our food domestically is important for reasons of long-term security. With the world’s population growing and food shortages likely, we cannot guarantee that that will not be necessary in future. Food security is important.

Britain is an efficient agricultural producer. Other countries are very inefficient. Increasing their efficiency would make their agriculture more profitable, and they would be able to sell it. In some cases, their wage costs are much lower. They could sell more to countries such as Britain as and when we decide to purchase. A national approach to agricultural subsidies is the way forward. The CAP is outdated and was never a good idea in the first place.

From time to time we have called for reform of the CAP, and some reforms have been made. I called for its abolition, but our leaders during the previous Parliament decided that they would seek serious reform. I remember that at the end of Britain’s last presidency of the European Union, Tony Blair went to the very last meeting in December, in theory to call for CAP reform. He was then beaten all around the room by President Chirac, coming back with no reform and a cut in our rebate. At the time, The Economist, hardly a magazine of the left, said that the deal was so bad that no deal would have been better. So much for reform. We must put pressure on the European Union. That is the only thing it reacts to.

[Neil Parish]

I think the mistake made by Prime Minister Tony Blair at the time was that he gave away the rebate without getting the reform. What he should have done, if he was going to give away the rebate, is get the CAP reform first. That was his mistake.

--- Later in debate ---

[Kelvin Hopkins]

Indeed. Had I been at his side, I would perhaps have advised him rather differently, but I was never at Tony Blair’s side, and he never consulted me on my views.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

That was his undoing.

[Kelvin Hopkins]

Indeed. I do not flatter myself, but a bit of advice here and there might have been helpful.

The Government’s response makes important points, including a call for greater emphasis on subsidiarity. If subsidiarity means that more decisions will be made at national level within the European Union, it is a good thing. We had a debate about it in the Chamber the other day. I think that the rest of the European Union regards it as a decoration, but we take it seriously, and we want more things decided at national level. The Government urge more regional flexibility. The ultimate regional flexibility is for agricultural subsidy and policy to be decided at national level. That is a sensible way forward too.

The report mentions room for savings. The Government say that CAP expenditure should be cut substantially, and I tend to take the Government’s side. I hope that we will not take a “softly, softly” approach to the CAP, that the Government will continue to take a strong line and that ultimately, the CAP will be abolished and replaced by more sensible arrangements based at national level.

Earlier in the debate, a point was raised about genuine farmers. Quite a high proportion of farmers in continental Europe, particularly in wealthy countries such as Germany, use farming as a secondary source of income. They are solicitors, doctors, factory workers or whatever, but they have a small market garden and receive subsidies to buy tractors and so on, and that has been going on for decades. Such people are not genuine farmers, but they get a bit of extra cash from growing a few vegetables and receiving a subsidy from the European Union. That is not farming and we ought to take such matters seriously.

There is, of course, still a degree of corruption although it is perhaps not as bad as it was. I remember hearing about a beef producer who lived in a tower block in Turin, although I do not know how many cows would have fitted on the grass outside. That was some years ago, but there is scope for corruption and if national Governments have to subsidise the system, they will take such matters more seriously. They will ensure that people are genuine farmers and they will try to eliminate corruption so that every penny, cent, or euro is spent more sensibly and is better targeted. In that way, the agricultural industry across Europe will be better for everyone at both nation state level, and collectively.